Convert APR to APY and APY to APR with precise compounding options See your growth on a clean chart Export data to PDF or CSV Built for finance pros students and analysts Make better rate comparisons with clarity Supports daily weekly monthly quarterly semiannual annual and custom periods Choose 365 or 360 basis selection
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APR and APY describe annualized returns or costs, yet they answer different questions. APR is a nominal yearly rate that does not include the intra‑year compounding effect. APY is the effective annual yield after compounding. When you compare loan quotes or savings offers, you must align the basis to avoid misleading conclusions.
Annual Percentage Rate represents a nominal rate quoted by lenders or card issuers. It is typically paired with a compounding schedule such as monthly or daily. Annual Percentage Yield is the realized rate after the stated compounding is applied across a full year. Because APY accumulates interest on interest, it is always at least as large as the nominal APR when compounding occurs.
To convert APR to APY with compounding n times per year, use APY = (1 + APR/n)^n − 1. The reverse conversion is APR = n × ((1 + APY)^(1/n) − 1). For daily compounding, choose 365 or a 360 day basis, depending on product disclosures. For continuous compounding, APY = e^{APR} − 1 and APR = ln(1 + APY).
Comparing a 5 percent APR that compounds monthly with a 5 percent APY can produce different costs or returns. The monthly compounding quote yields about 5.116 percent APY, which beats a flat 5 percent APY. On loans, higher APY means higher effective cost. On deposits, higher APY means stronger growth. Using the right metric keeps marketing language honest and supports apples‑to‑apples comparisons.
Shoppers evaluating mortgages, certificates of deposit, credit cards, auto financing, or high‑yield accounts benefit from converting between APR and APY. Finance teams also use the conversion to normalize internal hurdle rates, pricing models, and treasury benchmarks. Educators prefer APY when teaching compounding, while auditors reference APR in compliance checklists.
Enter either APR or APY, select the compounding frequency, and choose the day count for daily compounding. The tool computes the equivalent rate, shows a period‑by‑period growth path for a sample principal, and lets you export results to PDF or CSV. The chart visualizes how compounding frequency changes the curve of value through the year.
Always read disclosures for compounding frequency, day count basis, and fees. APR may exclude origination or service fees, while APY on deposits ignores early withdrawal penalties. Promotional teaser rates sometimes change schedules midyear, making naive comparisons risky. When compounding is monthly, small frequency differences rarely outweigh fees, so model both elements. If you will hold a product for less than a year, compute an effective rate over your exact horizon and record assumptions for consistent decisions.
APR to APY converter, APY to APR calculator, effective annual yield, nominal interest rate, compare savings rates, harmonize loan quotes, daily compounding 365 vs 360, continuous compounding, treasury yield normalization.
APR is a nominal annual rate that ignores intra‑year compounding. APY is the effective annual rate after compounding, and is the preferred measure for growth or true borrowing cost.
Consumers usually see 365, while some banks quote 360. Use the basis shown in the disclosure to match your calculation to the product.
Select APY → APR, choose a compounding frequency, and the calculator applies APR = n × ((1 + APY)^(1/n) − 1).
Yes, when compounding is annual with n = 1. Otherwise, APY exceeds APR for positive rates.
Yes. For continuous compounding, APY = e^{APR} − 1 and APR = ln(1 + APY).
Charts are easier to read in currency terms. The shape would be identical regardless of principal size because the growth factor depends only on the rate and frequency.
Yes. Use the buttons to download a CSV of the growth table and a PDF with both the results and the chart image.
Educational use only. Not financial advice.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.